Tag: Financial Instruments

Definition Venture Capital (VC) is a form of private equity financing that is provided by venture capital firms or funds to startups, early-stage and emerging companies that have been deemed to have high growth potential or which have demonstrated high growth. Venture capital investments are essential for startups without access to capital markets, providing not only funding but also strategic guidance, networking opportunities and operational support. Investment Strategy High Risk, High Reward: VC funds invest in the early stages of companies in exchange for equity, taking higher risks in anticipation of substantial returns.

Definition The Yield Curve is a graphical representation that shows the relationship between interest rates (or yields) and different maturity dates for a similar debt instrument, such as government bonds. It typically reflects the yields of bonds ranging from short-term to long-term and is a critical tool for investors, economists and policymakers to gauge market expectations about interest rates, inflation and economic growth. Importance of the Yield Curve Economic Indicator: The Yield Curve is widely regarded as a predictor of economic performance.